India-US Tariff War / How did Trump get into trouble with India over tariffs? Understand in 6 points

India-US Tariff War: The hefty tariffs imposed by US President Donald Trump on various countries are ushering in a new era in global trade and diplomacy. These tariffs imposed on India, Brazil, China and other countries are not only affecting America's relations with these countries, but are also giving rise to a new global order, which can become a challenge for US foreign policy.

Trump's tariff strategy and its objective

Trump has made the goods of India, Brazil, and other countries expensive in the US market by imposing tariffs of up to 50% on them. Targeting India, Trump argues that India is promoting the Ukraine war by buying oil from Russia. His intention behind this is clear:

• Forcing Russia to compromise with Ukraine.
• Pressing India to open up its agriculture and dairy sector.
• Weakening China's manufacturing strength.
• Punishing Brazil for its growing global assertiveness.

However, this strategy is backfiring. These countries are not only coming closer to each other but also strengthening a parallel global order through forums like BRICS.

India-Brazil: Towards a new partnership

The recent talks between Prime Minister Narendra Modi and Brazilian President Lula da Silva are an example of this changing scenario. The two leaders agreed to enhance cooperation in trade, technology, energy, defence, agriculture and health sectors. Brazil, which faces 50% tariffs like India, has openly criticised Trump's policies. The talks are a sign of growing cohesion among the BRICS countries.

China's support and SCO summit

China has also criticised the US tariffs against India. China's Ambassador to India Xu Feihong said that the use of tariffs as a weapon not only violates the United Nations Charter but also undermines the rules of the World Trade Organisation (WTO). This statement shows that China stands with India and Brazil on this issue. Also, Prime Minister Modi's visit to China after seven years and his participation in the upcoming SCO summit will further strengthen this partnership.

Rebirth of BRICS

According to a Reuters report, Trump's tariffs are giving an opportunity to unite the BRICS countries—Brazil, Russia, India, China, South Africa, and recently joined Iran, Ethiopia, Indonesia, Egypt and UAE. These countries are working towards strengthening trade in local currencies, joint infrastructure projects and alternative financial institutions. This could be a big blow to Trump, as he has always seen BRICS unity as a threat.

India's closeness with Russia

National Security Advisor Ajit Doval's meeting with Russian President Vladimir Putin in Moscow and External Affairs Minister S. Jaishankar's upcoming visit to Russia indicate that India is leaving no stone unturned to strengthen its alternative partnerships. There are reports that Putin may also visit India soon.

Discontent in Europe too

The impact of Trump's tariffs is reaching Europe. Some politicians in Switzerland have demanded the cancellation of the $9.1 billion F-35A fighter jet deal with the US after the US imposed a 39% tariff on Switzerland. This shows that Trump's policies are angering even America's traditional allies.

Towards an alternative global order

According to a report by The Guardian, many countries are now looking for alternative ways to avoid US pressure. Trading in local currencies, joint projects and the development of alternative financial institutions are examples of this. If this trend accelerates, the equation of global trade can change completely.